February 10, 2017
By Dennis Kaiser
CBRE Group, Inc. recently brought together China’s CCCG Overseas Real Estate Pte. Ltd (CORE), and Related Cos. to initiate the next phase of the massive Grand Avenue project in DTLA. CBRE and Macquarie Capital acted as financial advisor in securing CORE as a strategic capital partner who infused $290 million in the joint venture.
Connect Media went behind the deal with CBRE’s team to find out how the complex cross-border partnership came about, and what this project means to the market.
Q: What is the Grand Avenue project, and what role is it expected to play in the evolution of DTLA?
A: Grand Avenue is a mixed-use development designed by world-renowned architect Frank Gehry that will include an Equinox branded hotel, retail, restaurants, as well as additional market-rate and affordable residences.
Downtown Los Angeles is fast becoming the most cosmopolitan, connected and creative district in Southern California, but the next phase of Grand Avenue Project brings a new dimension and culmination of this evolution. This represents a rare opportunity to build a trophy development designed by one of the world’s most celebrated architects.
Q: Who are the players and what are their roles?
A: CBRE’s Los Angeles office and CBRE Capital Advisors in New York and Hong Kong, together with Macquarie Capital’s offices in New York and Hong Kong represented Related; a private real estate developer headquartered in New York. In Los Angeles, the CBRE team consisted of Onno Zwaneveld, Laurie Lustig-Bower, Sean Xia and Kadie Presley Wilson.
Q: Why is it vital to assemble a team equally matched to such a complex task, as well as important project for DTLA?
A: We were able to bring to bear our intimate knowledge of the local market, as well as our ability to access global capital, for the benefit of Related as it develops a landmark location that will be a defining project for Downtown Los Angeles and further revitalize the city’s civic core.
For comments, questions or concerns, please contact Dennis Kaiser